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Here are just a few examples taken directly from some of the largest United States resort developers in their SEC filings: In Their Own Words WHY CAN'T I SELL MY TIMESHARE? (Note: VOI is the acronym for Vacation Ownership Interest, which is simply another way of referring to timeshare ownership)
“The sale of vacation ownership interests in the secondary market by existing owners could cause our sales revenues and profits to decline.“ “If a viable VOI resale market were to develop in the future, our members may choose to resell their interest to their parties." “If the secondary market for VOIs were to become more organized and liquid, the resulting availability of resale VOIs (particularly where the VOIs are available for sale at lower prices than ours) could adversely affect our sales and our sales prices.”
“The resale market for VOIs could adversely affect our business.”
“There is not currently an active, organized or liquid resale market for VOIs, and resales of VOIs generally are made at sales prices substantially below their original customer purchase prices.” Clearly, resort developers have a substantial financial incentive to prevent a viable secondary resale market from taking hold. The reasons are plain: Resales negatively impact a resort’s revenue and profit because secondary market sales reduce a resort’s ability to sell new inventory at higher prices. Resorts admit this in their SEC filings, but did the resort sales staff disclose this to you when they were selling you your timeshare interest?
“Buy because you plan to use your timeshare in the future. Consider your purchase as an investment in future vacations. It is not a real estate or other type of financial investment” American Resort Development Association (ARDA)
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